Your monthly subsidy payment is based on the amount you borrow up to your subsidised loan limit.

If your home loan balance is equal to or greater than your subsidised loan limit, your subsidy will be calculated on your subsidised loan limit. This means you will receive the maximum monthly subsidy payable in your tier level.

If your home loan balance is less than your subsidised loan limit, your subsidy will be calculated on the total of your home loan.

The same subsidy calculation is used on all subsidised portions of DHOAS home loans, and you will receive a comparable proportion, whatever the limit.

You are eligible under tier 2 and your subsidised loan limit is $420,190.

If you take out a loan of $450,000, your subsidy will be calculated on the maximum limit of $420,190.

This means you will receive the maximum monthly subsidy payable in your tier, which is $352 per month (as at September 2017).

If you become eligible under tier 3, your subsidised loan limit will increase to $560,254.

However, because your loan balance is $450,000, your subsidy cannot be calculated on the maximum limit of $560,254. But, your subsidy can now be calculated on all of your home balance of $450,000.

This means your monthly subsidy will increase, but you will not receive the maximum monthly subsidy of $469 payable for tier 3 (as at September 2017). You will receive a comparable proportion of $377.

Member's subsidy Tier

Subsidised loan limit

Member’s home loan amount

Home loan greater or less (than subsidised loan limit)?

Actual subsidy

Tier 2

$420,190

$450,000

Greater

$352

Tier 3

$560,254

$450,000

Less

$377

Example 2 – Your loan is less than your subsidised loan limit

You are eligible under tier 2 and your subsidised loan limit is $420,190.

If you take out a loan of $250,000, your subsidy can’t be calculated on your maximum limit of $420,190. This means you won’t receive the maximum subsidy payment of $352 per month (as at September 2017).

However, your subsidy can be calculated on all of your home balance of $250,000. This means you will receive a monthly subsidy of $209.

If you become eligible under tier 3, your subsidised loan limit will increase to $560,254.

However, because you have a $250,000 home loan, your subsidy is already calculated on all of your loan balance so your subsidy amount will not increase.

Member's Tier

Subsidised loan limit

Member’s home loan amount

Home loan greater or less (than subsided loan limit)?

Actual subsidy

Tier 2

$420,190

$250,000

Less

$209

Tier 3

$560,254

$250,000

Less

$209

Loan balance and timing of subsidy

The home loan balance you have at the time you receive your first DHOAS subsidy payment is used to identify how much of your eligible subsidised loan limit you can receive a subsidy on.

This will remain the case for the duration of your DHOAS assistance on that home loan, unless you stop then restart the subsidy payments.

If you do make changes, your home loan balance that is current at the time you restart DHOAS will apply.

Home loan balance and delayed subsidy payments

It is important to note that your monthly subsidy is calculated on your home loan balance, up to your subsidised loan limit, at the time of your first subsidy payment, not at the time you draw down your loan.

You need to be mindful of this if you draw down your loan and then change your balance in any way before you receive your first subsidy payment (even if there’s only a difference of a few days, weeks or months).

In some circumstances, you may have to delay receiving your first subsidy payment until a while after taking out your home loan. This may occur for a number of reasons, including the inability to occupy the home immediately, which is a condition of receiving the subsidy.

In this case, the balance of your home loan may be less than when you originally took out the loan, especially if you have deposited lump sums into your loan or made additional payments.

If this has reduced the maximum amount on which you can receive a subsidy, your monthly subsidy payments will be less.